Apple on Monday unveiled an upgraded iPhone with a faster Internet connection and satellite navigation capabilities.

The new model is priced 200 US dollars lower than current models, but with more expensive service.

Steve Jobs is CEO of the Apple Company.

"We're gonna start with 22 of the biggest and we're going to be rolling out the iPhone 3G at the same time in all of these countries and we're rolling it out on July 11th."

Analysts had said Apple needed to slash the multimedia gadget's price and upgrade it to work over so-called 3G, or third-generation, wireless networks to hit the company's target of selling 10 million iPhones by the end of 2008.

A 16 gigabyte model will cost 299 US dollars.

Apple has inked deals for wireless carriers in a total of 70 countries to carry the new iPhone.

AT&T, the exclusive US carrier for the phone, said its plans for the phone would start at 39.99 US dollars per month, plus 30 US dollars for unlimited data.

That works out to be a 10 US dollars increase from the cheapest plan for the first-generation iPhone.